Cyprus gives tax breaks to lure expat home buyers.
The new draw for pastures new on the Island of Cyprus is an array of government incentives. Instant residency, half price title deeds, tax breaks for property owners and a chance to obtain a European Union passport.
Last summer Cyprus passed legislation that allowed anybody who spends more than 183 days a year on the Island to become a tax resident. As a Cypriot resident you will pay no capital gain taxes in Cyprus on British assets when they’re sold, you will only pay the UK government tax on gains accrued after April 2015, when the British government changed its taxation rules for owners of British property living abroad.
Home sale prices in Cyprus so far haven’t risen since the deep declines after the financial crisis in 2008, however there are signs of stabilization according to the royal institute of chartered surveyors, which tracks global real estate trends. House prices were up in the first quarter by 1.5% compared to the same period the previous year condominium prices were up 1.2 % RICS data show. The average price of a property on the Greek side of Cyprus where majority of expats relocate is about 110,000.
High unemployment levels and lack of bank funding have hit the local home buyer’s according to the July RICS report. However foreign buyers from Russia and the UK have played a big role in increase of sales.
A new law recently passed will cut property taxes by 75% this year and will be abolished altogether in 2017.
Big spenders investing in Cyprus property instantly get offered Cyprus passports which provide access into the EU, a strong incentive for the Chinese as Cyprus has witnessed an influx of Chinese property buyers.
Discounts particularly on the west side of the island can be found across price ranges, with a Russian buyer recently negotiating a 3.3 million villa down to a purchase price of 1.1 million claims Dimitris Maratheftis, Director at West Coast Real Estate.
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